The point I am making is that unless the government owns the means of production, then all government income derives ultimately from private sector activity.
Nope. Government income (taxation) is derived from the production of goods and services. There is no basic economic
difference between tax on public sector and private sector production of goods/services
Taxes paid by public sector workers are not 'new money', in the sense that the government has given that money to the public sector workers in the first place, and is then taking it back.
No, the tax IS new money. It is levied on the goods/services produced by the Public sector
Since the UK got rid of all its nationalised industries, there are no government-owned enterprises which generate wealth. These are all in the private sector now, and that's where the surplus value is created which is then taxed to provide the government with its revenue.
How did privatisation change the nature of the taxes paid??? this is the point Ive tried to make several times. A miner employed by the National Coal Board produced the same goods and paid the same tax when he moved to RJB Mining Plc. Yet your argument seems to be that, when he was in the public sector there was no wealth creation.
It could be argued that this process of paying public sector workers out of one pot and then taking some of it back to go into another pot is a fiscally inefficient means of distributing the available income across different budgets - although it does have the politically desirable effect of promoting the illusion that public sector workers are contributing to the economy in exactly the same way as private sector workers - which clearly they aren't, if for no other reason than their relationship with the State.
Again I would reiterate - there is NO difference between Public Sector / Private Sector with regards to (a)production of goods/services and (b) Taxation. If you think there is then please explain to me the difference between the taxes paid by an NHS nurse vs the taxes paid by a BUPA nurse.
The NHS nurse produces a service which is paid for indirectly by consumers via tax.
The BUPA nurse is paid directly by the consumer.
Both have contributed towards GDP and the economic output of the nation. Both will pay exactly the same type of income taxes.